Legal Question in Real Estate Law in California

She is probably still obligated to sell the home - now she has to go through probate and that process - but if the buyer decides to wait for the probate process, then she could well be forced to sell. This is not a "black & white" answer - to really fully know what rights she may or may not have, you need to have an attorney review the contract, escrow documents and other information to give you a solid opinion. Even if she is not legally obligated to sell the home, she is probably liable to the Buyers for damages for having entered into a contract to sell a property she did not own. You need to retain counsel immediately.

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If the estate is now in probate, it would be timely to bring this matter to the attention of the probate judge. They make their living answering questions like this. My guess is that the court may require the sale to be completed, if the buyer is still willing to buy. Among other things, there is a principle in law that one who sells real property they don't own, but acquire title to later on, will be treated as having sold the property upon acquiring title. You don't have exactly the same situation here, because in fact an heir owns the inheritance from the moment of the decedent's death. The ownership is, however, subject to confirmation in probate, to claims of creditors of the estate, etc.

I agree with Mr. Whipple. The doctrine is known as the doctrine of after acquired title, and if a deed was delivered, it would create what is called an estoppel by deed. Title subsequently acquired by the seller inures to the benefit of the buyer.

If the deal is in escrow, this may hold up the sale, depending on the terms of the escrow. The title company would most likely have found that the seller did not have vested title, because record title was in the name of the deceased. Depending on contingencies, this may cause the escrow to be cancelled.